This occurs for me too - sometimes, selecting parts of the quoted text that lie
outside the viewable cause it to be wrapped.
Lacking line wrapping happens somtimes just for the quoted, but sometimes even
for the new text I type as reply.
Even explicitly selecting Wrap lines from the format menu
I'm facing this problem too. It occurs in several apps from native gnome
up to eclipse..
It occurs opnly when using compiz. If I turn of the eye candy it's all fine..
I'm using the most current version of the proprietary nvidia driver, normally
avaliable over apt..
Ubuntu Hardy
Kernel: